Silver Price Forecast: XAG/USD Surges on Yield Plunge Ahead of US Elections
The silver price (XAG/USD) has rallied to near $33, buoyed by a sharp decline in US Treasury yields as investors grapple with uncertainty ahead of the US presidential elections on Tuesday.
10-year US Treasury yields have plummeted to near 4.27%, reducing the opportunity cost of holding non-yielding assets like silver. The US Dollar Index (DXY) has also weakened, falling to a two-week low of near 10.70.
Market sentiment has shifted after a recent poll showed Vice President Kamala Harris leading President Trump in Iowa. This unexpected development has increased volatility and heightened expectations for a potential rate cut by the Federal Reserve on Thursday.
Technically, silver price has found strong support near the key horizontal level of $32.50 and the 20-day EMA. The RSI suggests a pause in the bullish momentum, but the overall trend remains upward.